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blog rruRegional Round-up  is a monthly newsletter providing an overview into the environmental and business conditions affecting farmers and rural businesses in the Goulburn Valley and North East Victoria.

Dairy

Both Fonterra and Murray Goulburn suppliers are dealing with a step down in milk price announced in late April early May. In both cases the cut is retrospective and will apply to milk supplied from the 1st July 2015.

Murray Goulburn has not finalised its revised price. It is expecting to be between $4.75 and $5.00 per Kg so will pay $5.49 for the remaining months. The balance of the shortfall is to be recovered from suppliers’ milk proceeds over the next 3 years. MG has recently announced an option for suppliers to pay back the shortfall earlier.

The volume of information emerging from both factories explaining the milk price drop, loans and socialized debt has been immense. This has been challenging for dairy farmers to keep up with, let alone managing the impact of the price drop upon their business.

 

Cropping/Sheep

May rain has been beneficial to many croppers and the warm dry autumn is no longer a topic of conversation. Sowing has progressed well, and it appears a sense of optimism is present amongst croppers given good rain and weather conditions for crop establishment.

 

Beef

Good rains followed up by warm weather has enabled some good grass growth across the north east, which has eased feeding pressures and alleviated many concerns about a tough growing season. Significant fodder is still being fed out in areas that have been grazed heavily during autumn. Water availability next irrigation season will be a significant factor in determining stock numbers for the months ahead.

 

Irrigation

The irrigation season finished on the 15th May and Irrigators were aided by good rains across the region in the last weeks of the season.
Storage levels in Lake Eildon are at 32% against 57% last year. The Hume is holding 24% (against 25% LY) and Dartmouth 44% (against 75%LY). GMW resources storage levels website.
Low or Nil allocations for the opening of the 2016/17 seasons remain the likely outlook.
Water prices averaged $235 for May (down from $245). (Temp water).

Call 1300 834 775 to find out what assistance we may be able to provide you, or make an appointment with one of our experienced Rural Financial Counsellors.

AgBiz Group

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Contact Us

Rural Financial Counselling Service Victoria - North East.

Unit 1, Enterprise House

3 Stanley Street

Wodonga VIC 3689

PHONE: 1300 834 775

EMAIL: info@rfcsvicne.org.au

FAX: (02) 6100 6123